2021 first quarter performance resulted in historical figures for Randon Companies, which reported consolidated net revenue of BRL 1.9 billion. The positive result, with a 64% growth compared to the first quarter of 2020, was driven by the heated demand from sectors related to agribusiness and the sale of consumer goods, especially through e-commerce. In addition, the favorable exchange rate and the acquisitions of new companies contributed to the best quarter of the company's 72 year history.
In line with this advance, the company increased consolidated gross margin by 5.2 percentage points, reaching 26.8% in the first quarter of 2021. Consolidated EBITDA was BRL 349 million, a 226.5% increase when compared to the first quarter of 2020, and EBITDA margin of 18.3%, an increase of 9 percentage points in relation to the same period the previous year.
“The satisfactory performance that the company has been presenting in recent months is also connected to the constant investment in innovation and new technologies, which directly contributes to the improvement of efficiency and productivity. This was also noticed in this first quarter of 2021, a period in which we consolidated important movements made by the company, including results of our cultural and digital transformation process,” said Randon Companies CEO, Daniel Randon.
For the company, the first quarter was yet another period of market growth, driven by segments that are still recovering and expanding. This is the case with truck production, which showed an increase of 34% in comparison with the first quarter of 2020, reaching more than 33 thousand units. The semi-trailer market followed this trend and grew by 60% in the same comparison, with 21,296 units registered in the first three months of the year.
“The positive impact of the economic recovery in different geographies and the favorable exchange rate for exports also contributed to the positive performance at the beginning of the year. In addition, during this quarter, it was already possible to add the revenues of the new recently acquired companies, such as Nakata, Fundituba and CNCS,” said Randon Companies CFO, Paulo Prignolato.
Shortage of raw materials
The pressure on the inputs and raw material supply chains, especially steel, required an additional effort to guarantee production, meet the strong market demand, and mitigate the effects of inflation on costs. Since the second half of 2020, Randon Companies have been working intensively to guarantee the supply of their raw materials, negotiating with suppliers and making strategic purchases. “We live today in an extremely challenging scenario in relation to the supply of inputs and inflation of raw materials. We continue to work to avoid problems with scarcity in the company's production, but this is one of the points we will focus on in the coming quarters,” said Prignolato.
Investments
Investments during the quarter totaled BRL 122.8 million and were mainly used for industrial automation, expansion of the Randon Araraquara subsidiary, capital payments to Banco Randon, and non-organic investments in indirect subsidiaries CNCS and Ferrari.
ESG
On June 1st, in an online event open to all interested parties, Randon Companies will present their ESG (Environmental, Social, Governance) related activities. The theme, which has always been present in how the company conducts its business, now gains an approach that more closely follows market practices. On that occasion, the company's commitments to sustainability will be presented, through the Rota Verde Program, as well as its priority ESG and SDG action pillars. “Our commitment to the environment, to society, and to corporate governance is focused on looking to the future, as a global company, which seeks the sustainability of its business, but which also hopes to contribute to a better world, through our skills and always guided by our purpose,” said Daniel Randon.
